How accountants can boost India’s trade ties with Australia

Narendra Modi
Narendra Modi

By Raman Bhalla:

—-The new Indian Government under the leadership of Prime Minister Narendra Modi has

come to the power on the promise of rapid economic development of India. This presents a

great opportunity for Australia under the business friendly Prime Minister Tony Abbott.

Australian India relations are strategic which means it is multi-facet relations where

economic ties are critical. For the relations to grow further, both countries need to take

proactive approach with regards to the promotion of business with each other.

The current two-way between these two countries trade stands at approximately $14 billion

which is highly dominant with Australian exports of coal, gold, copper and other

commodities of approximately $9 billion. The India’s export to Australia is mainly pearls,

gems, jewellery and services of approximately $2.4 billion. In comparison, the Australian

China’s two-way trade is approximately $150 billion.

For Australia- India must realise the economic potential of its business ties and take urgent

steps to rectify the situation. Both countries have numerous resources and skills which are

complementary to each other. As a priority, the focus needs to be on non-traditional areas.

Both countries need to prioritise on the following area of high growth:

Agriculture and distribution system: Indian economy relies heavily on its agriculture to

boost its economic growth. There is a lack of efficient distribution system. Australia has the

expertise in these fields and it presents a big opportunity to offer.

Infrastructure and clean technology: India has a gaping hole to fill in its infrastructure needs

in the areas of rail, road, ports, power, energy and clean technology. Australia is obviously is

at the fore front to explore this potential.

Professional services and free flow of capital: Free Trade Agreement (“FTA”) could facilitate

free flow of goods, services, capital and human resources. The sooner the FTA is settled and

implemented upon, it is good for bilateral relations.

In this backdrop, the Institute of Chartered Accountants of India (“ICAI”) can play a pivotal

role to achieve the ambitious goals. There are more than 200,000 Indian Chartered

Accountants (“ICAs) who occupy key positions in the businesses in India and there are

thousands more who are settled in Australia who play important role in business sector in

Australia. They could influence the decision making in both countries with regards to the

investment and the trade. ICAI has on the ground facilities in numerous places in both

countries which can play an equally important role to aggressively fill up this gap.

Abot The Author:

Raman Bhalla | Vice Chairman

Australian Chapter of the Institute of Chartered Accountants of India

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About Ashok Kumar

Ashok Kumar is an accomplished journalist with over 38 years of experience in the profession in various capacities. He was a sub-editor in Patriot and later Chief Sub-editor in The Hindustan Times, New Delhi. He has several published articles and reports in Patriot and HT. Published reports in The Blacktown Sun in Sydney. He had also been a tutor in journalism in the University of Western Sydney. He is currently Editor at The Indian Sub-continent Times, Sydney.

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